- Robinhood’s share price will hit $105 by May 2026, analysts say.
- The trading app’s crypto efforts are expected to fuel the rally.
- The company’s tokenised equities initiatives are seen as the next big frontier.
Robinhood’s crypto push will fuel a rally that will see its share price surge by 92% to $105 over the next year.
Analysts at Bernstein made that prediction in a Monday note to investors, which would put the trading platform’s market cap at $73 billion.
“We expect [Robinhood] to continue gaining market share in trading revenues driven by strong product pipeline across equities, crypto, and disruptive products such as prediction markets and tokenisation,” wrote analysts led by Guatam Chhugani in the note.
The bullishness comes as Robinhood faces increased competition from both traditional financial players like Morgan Stanley, and industry-native firms like Kraken — not to mention fintechs like Revolut and eToro.
Growing competition
The growing competition is a sign of the times.
Investment firms have elbowed into the fray after US President Donald Trump’s new administration paved the way for crypto-friendly regulations, which are expected to create more certainty around digital assets.
Robinhood has the advantage of having provided crypto-trading services since 2021, Bernstein wrote.
This has enabled the firm to control some 30% of the US retail crypto-trading market, the analysts estimated.
Robinhood is also looking to expand its blockchain-based business by offering tokenised equity-trading services.
Vlad Tenev, Robinhood’s CEO, has made no secret of his desire to do so. He has argued for it in opinion pieces, interviews, and podcasts.
The idea is that offering tokenised equities will enable startups to drive liquidity to their equity issuances and new investors to tap into a growth category, which could translate to more business for Robinhood.
Diversification
To be sure, Tenev has said that the company plans to grow beyond crypto to avoid price fluctuations like those during the first quarter, which shaved 30% off Robinhood’s revenue, compared with the last three months of 2024.
“It’s going to go up and down in terms of trading volume,” Tenev said about crypto trading during an earnings call. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”
In March, Robinhood said it is exploring services like wealth-management tools, bespoke investment portfolios, and bank accounts.
Crypto trading volume on Robinhood fell to $46 billion in the first quarter, from $71 billion at the end of 2024.
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
